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Which of the following fees is a finance charge?
Which of the following fees is a finance charge?A . A notary feeB . An origination feeC . An appraisal feeD . A late payment feeView AnswerAnswer: B Explanation: An origination fee is considered a finance charge under TILA because it represents the cost of obtaining credit. A finance charge...
Prepaid charges include which of the following items?
Prepaid charges include which of the following items?A . Origination feeB . Credit report feeC . Conveyance taxD . Per diem interestView AnswerAnswer: D Explanation: Prepaid charges refer to certain upfront costs paid at closing. These include: Per diem interest (D), which covers the interest from the closing date to...
A borrower who knowingly makes false statements on a federally related mortgage loan to obtain property may be:
A borrower who knowingly makes false statements on a federally related mortgage loan to obtain property may be:A . imprisoned for 10 to 16 monthsB . fined up to JB10,000 or imprisoned for 6 months.C . fined up to $1 million and imprisoned for 30 years.D . fined up to...
Which of the following acts requires mortgage loan originators to complete annual continuing education to satisfy the requirement for licensure?
Which of the following acts requires mortgage loan originators to complete annual continuing education to satisfy the requirement for licensure?A . The SAFE ActB . The Dodd-Frank ActC . The Truth in Lending Act (TILA)D . The Equal Credit Opportunity ActView AnswerAnswer: A Explanation: The SAFE Act (Secure and Fair...
When should the borrower receive the Closing Disclosure?
A borrower has been approved for a new home loan and has completed all necessary paperwork. When should the borrower receive the Closing Disclosure?A . 4 business days prior lo consummationB . 3 business days prior to consummationC . 1 business day prior to consummationD . On the day of...
What is the minimum amount of flood insurance a lender must require on a residential building located in a special flood hazard area?
What is the minimum amount of flood insurance a lender must require on a residential building located in a special flood hazard area?A . $50,000 for residential property structuresB . $150,000 for residential property structuresC . $250,000 for residential property structuresD . $350,000 for residential property structuresView AnswerAnswer: C Explanation:...
Which of the following services is included in the definition of a settlement service?
Which of the following services is included in the definition of a settlement service?A . Flood insuranceB . Homeowners association feesC . Title company/escrow agent servicesD . Sale of the mortgage loan on the secondary marketView AnswerAnswer: C Explanation: Under RESPA (Real Estate Settlement Procedures Act), settlement services include activities...
The loan-to-value ratio for an FHA loan is calculated by dividing the loan amount by:
The loan-to-value ratio for an FHA loan is calculated by dividing the loan amount by:A . the purchase price of the property.B . the appraised value of the property.C . the lesser of the purchase price or appraised value.D . the purchase price, plus the mortgage insurance for FHA loans.View...
(ECOA)?
Which of the following reasons is acceptable for denying a loan under the Equal Credit Opportunity Act (ECOA)?A . Receipt of child supportB . Immigration statusC . Marital statusD . Country of birthView AnswerAnswer: B Explanation: Under the Equal Credit Opportunity Act (ECOA), lenders can deny a loan based on...
The Equal Credit Opportunity Act (ECOA) defines the term "elderly" as anyone:
The Equal Credit Opportunity Act (ECOA) defines the term "elderly" as anyone:A . 60 years of age or older.B . 62 years of age or older.C . 65 years of age or older.D . 70 years of age or older.View AnswerAnswer: B Explanation: Under the Equal Credit Opportunity Act (ECOA),...
